Question 1

What is the homestead exemption in South Dakota?

Accepted Answer

South Dakota's main owner-occupied relief is the owner-occupied classification: a house, condominium, townhouse, duplex, triplex, fourplex, or manufactured or mobile home lived in by the owner as a primary residence is classified as owner-occupied and taxed under the separate owner-occupied school levy. An individual can claim only one owner-occupied property in the state, and commercial property owners cannot use it. What South Dakota calls its "Homestead Exemption" is actually a tax deferral for people 70 or older (see senior_exemption).

Question 2

How do you apply for a homestead exemption in South Dakota?

Accepted Answer

Send the owner-occupied certificate to the county Director of Equalization; property previously designated owner-occupied stays that way unless sold. The assessment freeze, homestead deferral, municipal reduction and paraplegic reduction are filed every year (by April 1) with the county treasurer (paraplegic reduction: county auditor per the relief programs page), with applications available online or at the courthouse starting in January. The disabled veteran and paraplegic veteran exemptions are filed with the county Director of Equalization (assessor) and, once approved, remain until the property is transferred or sold.

Question 3

When is the deadline to apply for a homestead exemption in South Dakota?

Accepted Answer

Owner-occupied certificate: March 15 (to the county Director of Equalization). Assessment freeze, homestead deferral, municipal reduction and paraplegic reduction: April 1, each year. Disabled veteran and paraplegic veteran exemptions: November 1. Tax refund for senior and disabled citizens: May 1 to July 1.

Question 4

Do seniors get a property tax exemption in South Dakota?

Accepted Answer

Assessment freeze for the elderly and disabled: an owner-occupant 65 or older (or disabled under the Social Security Act) of a single-family dwelling who has been a South Dakota resident for five years (unless the freeze was received the previous year) and lived in the home at least 200 days the previous year can keep the home from increasing in value for tax purposes. Limits stated in March 2026: household income less than $56,595 (single-member) or less than $66,885 (multiple-member), and a value limit of $514,500 of full and true value; the property covers the house, garage and lot or one acre, whichever is less. Unremarried surviving spouses may qualify. Apply annually to the county treasurer by April 1. Homestead exemption (deferral): people 70 or older (or a surviving spouse) meeting income and residency requirements can delay paying property taxes until the property is sold; the taxes become a lien with interest. Rapid City residents may also get a municipal tax reduction (income limits apply).

Question 5

Do disabled veterans pay property tax in South Dakota?

Accepted Answer

Disabled veteran exemption (SDCL 10-4-40): property owned and occupied by a veteran rated permanently and totally disabled as the result of a service-connected disability, or an unremarried surviving spouse, has the first $200,000 of valuation exempted. Paraplegic veteran exemption (SDCL 10-2-24.10): a home owned and occupied by a paraplegic veteran or a veteran with loss or loss of use of both lower extremities (or an unremarried surviving spouse), specially designed for wheelchair use, is exempt from all property taxes. Both are filed with the county Director of Equalization by November 1 and remain until the property is transferred or sold.

Question 6

Is there a property tax exemption for people with disabilities in South Dakota?

Accepted Answer

People disabled under the Social Security Act can use the assessment freeze on the same terms as seniors. A paraplegic or person with loss or loss of use of both lower extremities (or an unremarried surviving spouse) whose home is designed for wheelchair use may get a property tax reduction on a graduated income scale (SDCL 10-4-24.11; income and occupancy limits apply; apply annually by April 1). Disabled residents with low incomes may also qualify for the tax refund for senior and disabled citizens.

Question 7

How much can a home's assessed value go up each year in South Dakota?

Accepted Answer

Senate Bill 216 (2025) caps annual increases in overall owner-occupied valuation at 3% in each county and limits local government property tax budgets to 3% annual growth. The changes first appeared in 2026 assessment notices and apply to taxes paid in 2027; both limits are temporary and last five years. The Department describes the cap as applying to overall owner-occupied valuation in each county. Seniors and disabled owners who qualify can also freeze their home's assessment.

Question 8

What property tax relief programs does South Dakota offer?

Accepted Answer

Tax refund for senior and disabled citizens: South Dakota residents all of 2025 who were 65 by January 1, 2025 or disabled during 2025, and who live alone with yearly income of $17,215 or less or in a household with combined income of $23,265 or less, may apply May 1 to July 1 to the Department of Revenue, Special Tax Division (homestead deferral recipients are not eligible). SB 245 (2026) directs revenue from the 0.3% sales tax increase returning on July 1, 2027 to lowering the school owner-occupied levy, with a one-time payment so every homeowner sees a lower school levy on the 2027 bill. SB 96 (2026) lets counties adopt a local sales tax of up to 0.5% (referable to a vote) to fund a credit on owner-occupied homes, beginning no earlier than January 1, 2027.

Question 9

How do you appeal a property tax assessment in South Dakota?

Accepted Answer

Assessment notices are mailed by March 1. First talk to the county director of equalization. A taxpayer must appeal first to the local board of equalization (non-residents and owners in unorganized townships excepted) or lose further appeal rights; for 2026 the written appeal was due by March 12 and the board met March 16-20 (it meets starting the third Monday in March). Next is the county board of equalization (2026: written appeal to the county auditor by April 7). From there, appeal either to the Office of Hearing Examiners (2026: by May 15) or to circuit court within 30 days after notice of the county board's decision, but not both. Owner-occupied status and taxable/exempt status appeals go directly to the county board.

Question 10

When are property taxes due in South Dakota?

Accepted Answer

Taxes are due and payable January 1 of the year following assessment and are paid to the county treasurer. They do not become delinquent if half of the bill is paid before May 1 and the remaining half before November 1.

Homestead exemption	South Dakota's main owner-occupied relief is the owner-occupied classification: a house, condominium, townhouse, duplex, triplex, fourplex, or manufactured or mobile home lived in by the owner as a primary residence is classified as owner-occupied and taxed under the separate owner-occupied school levy. An individual can claim only one owner-occupied property in the state, and commercial property owners cannot use it. What South Dakota calls its "Homestead Exemption" is actually a tax deferral for people 70 or older (see senior_exemption). Owner-occupied school levy: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf Source: South Dakota Department of Revenue, Property Tax; Property Tax Relief Programs (July 2026)
How to apply	Send the owner-occupied certificate to the county Director of Equalization; property previously designated owner-occupied stays that way unless sold. The assessment freeze, homestead deferral, municipal reduction and paraplegic reduction are filed every year (by April 1) with the county treasurer (paraplegic reduction: county auditor per the relief programs page), with applications available online or at the courthouse starting in January. The disabled veteran and paraplegic veteran exemptions are filed with the county Director of Equalization (assessor) and, once approved, remain until the property is transferred or sold. Program summary: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf Source: South Dakota Department of Revenue, Relief Programs; Property Tax Relief Programs (July 2026)
Application deadline	Owner-occupied certificate: March 15 (to the county Director of Equalization). Assessment freeze, homestead deferral, municipal reduction and paraplegic reduction: April 1, each year. Disabled veteran and paraplegic veteran exemptions: November 1. Tax refund for senior and disabled citizens: May 1 to July 1. Owner-occupied: https://dor.sd.gov/individuals/taxes/property-tax/ Source: South Dakota Department of Revenue, Property Tax; Relief Programs; 2026 Appeal Process Guide
Limits on assessment increases	Senate Bill 216 (2025) caps annual increases in overall owner-occupied valuation at 3% in each county and limits local government property tax budgets to 3% annual growth. The changes first appeared in 2026 assessment notices and apply to taxes paid in 2027; both limits are temporary and last five years. The Department describes the cap as applying to overall owner-occupied valuation in each county. Seniors and disabled owners who qualify can also freeze their home's assessment. Source: South Dakota Department of Revenue, Property Tax Relief Programs (July 2026)

Senior exemptions and freezes	Assessment freeze for the elderly and disabled: an owner-occupant 65 or older (or disabled under the Social Security Act) of a single-family dwelling who has been a South Dakota resident for five years (unless the freeze was received the previous year) and lived in the home at least 200 days the previous year can keep the home from increasing in value for tax purposes. Limits stated in March 2026: household income less than $56,595 (single-member) or less than $66,885 (multiple-member), and a value limit of $514,500 of full and true value; the property covers the house, garage and lot or one acre, whichever is less. Unremarried surviving spouses may qualify. Apply annually to the county treasurer by April 1. Homestead exemption (deferral): people 70 or older (or a surviving spouse) meeting income and residency requirements can delay paying property taxes until the property is sold; the taxes become a lien with interest. Rapid City residents may also get a municipal tax reduction (income limits apply). Deferral and municipal reduction: https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/ Source: South Dakota Department of Revenue, Assessment Freeze for the Elderly & Disabled (Mar. 16, 2026); Relief Programs
Veteran exemptions	Disabled veteran exemption (SDCL 10-4-40): property owned and occupied by a veteran rated permanently and totally disabled as the result of a service-connected disability, or an unremarried surviving spouse, has the first $200,000 of valuation exempted. Paraplegic veteran exemption (SDCL 10-2-24.10): a home owned and occupied by a paraplegic veteran or a veteran with loss or loss of use of both lower extremities (or an unremarried surviving spouse), specially designed for wheelchair use, is exempt from all property taxes. Both are filed with the county Director of Equalization by November 1 and remain until the property is transferred or sold. Details: https://dor.sd.gov/individuals/taxes/property-tax/relief-programs/ Source: South Dakota Department of Revenue, Property Tax Relief Programs (July 2026); Relief Programs
Disability exemptions	People disabled under the Social Security Act can use the assessment freeze on the same terms as seniors. A paraplegic or person with loss or loss of use of both lower extremities (or an unremarried surviving spouse) whose home is designed for wheelchair use may get a property tax reduction on a graduated income scale (SDCL 10-4-24.11; income and occupancy limits apply; apply annually by April 1). Disabled residents with low incomes may also qualify for the tax refund for senior and disabled citizens. Program summary: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf Source: South Dakota Department of Revenue, Relief Programs; Property Tax Relief Programs (July 2026)
Other relief (credits, deferrals, circuit breakers)	Tax refund for senior and disabled citizens: South Dakota residents all of 2025 who were 65 by January 1, 2025 or disabled during 2025, and who live alone with yearly income of $17,215 or less or in a household with combined income of $23,265 or less, may apply May 1 to July 1 to the Department of Revenue, Special Tax Division (homestead deferral recipients are not eligible). SB 245 (2026) directs revenue from the 0.3% sales tax increase returning on July 1, 2027 to lowering the school owner-occupied levy, with a one-time payment so every homeowner sees a lower school levy on the 2027 bill. SB 96 (2026) lets counties adopt a local sales tax of up to 0.5% (referable to a vote) to fund a credit on owner-occupied homes, beginning no earlier than January 1, 2027. Legislation: https://dor.sd.gov/media/pzopolsk/2026-pt-tax-reduction-programs.pdf Source: South Dakota Department of Revenue, Relief Programs; Property Tax Relief Programs (July 2026)

South Dakota Property Tax Exemptions: Homestead, Senior and Veteran Relief

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The homestead exemption

Senior, veteran and disability relief

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